BEHAVIOURAL BIASES IN INVESTING

Kahneman effect on career: How to use behavioural economics to succeed in your job

Chances are you have heard of Daniel Kahneman, 2002 Nobel laureate for economics, through his books or the news about his recent demise. What can we learn from the ‘grandfather of behavioural economics’?

James Montier’s tips to navigate behavioural bias for investment success

According to ace investor James Montier, many investors tend to believe that behavioural biases only affect others, leading them to overlook their own blind spot bias.

ETMarkets Smart Talk: There's high interest in Indian market among global fund managers; Jiten Doshi decodes FII behaviour

Foreign institutional investors base their decisions on factors like benchmark composition, market ownership, growth, returns, and valuation attractiveness. Initially cautious about India due to high valuations, they show interest despite concerns. Many investors favored China and other emerging markets over India but are now reassessing their investments in light of market dynamics.

Confirmation bias in investing: Why we never learn from our mistakes

Confirmation bias leads many to seek real estate and gold as preferred modes of investing. They do not want to look at any new information that disturbs their existing framework. Any argument about the limitations of these choices is likely to be ignored by them. Without an experience that is harmful for themselves, they tune out any information that goes against their preferences.

Kahneman for investors: How to use behavioural economics to become better a investor

For those who invest, this work is particularly relevant. The financial markets are filled with uncertainty, risk and emotional stress—conditions that make our cognitive biases stronger. Understanding these biases is the first step towards avoiding their bad effects.

Stock market psychology and behavioural finance: What investors should know

​Financial success is not a hard science. It’s a soft skill, where how you behave is more important than what you know. While everybody is looking at the same stock prices, same charts and has access to the same balance sheets and management commentary, not everybody has the same outcome in their trading and investing journey.

How a multi-factor strategy may work in smallcap investing

While investing based on factors like quality, momentum etc. has worked reasonably well in the long-term horizon, especially from one favourable cycle to the next, and can be used to target certain behaviours and return-risk profiles, they come with their own set of risks.

Amazon, Microsoft lead efforts to tackle inherent biases in GenAI

Generative artificial intelligence (AI) chatbots are not free of inherent biases, and several ongoing projects from the likes of Amazon and Microsoft are working towards reducing these biases linked to large language models (LLMs).

Morgan Housel's 5 tips to overcome behavioural biases and pitfalls while investing

Investing is not really about what you know, rather it is about how you behave, says Morgan Housel. The eminent investment writer and partner at Collaborative Fund cautions that one should be wary of behavioural biases and pitfalls while going out to invest in the market.

Businesses testing ways to safeguard against AI hallucination

Telecom, medicine and ad-tech are among sectors facing the threat of AI hallucinations that can cause bias to set into the model, making the decision-making process flawed.

How not to overspend at sales: Ways to avoid retailer tricks, cognitive biases that make you binge during festive season

The blitzkrieg that starts with massive online sales in October, lingers on till the end of the year, peppered with offline sales across malls and markets. Bombarded with ‘blockbuster deals’, ‘instant discounts’, ‘up to 89% off’, ‘no-cost EMIs’ and cashback offers, customers are ill-equipped to resist the urge to spend.

Stagger your money and review asset allocation if skewed towards small & midcaps: Aashish Somaiyaa

“I do not have doubts about the structural element of the MOFSL study but coming to the point about cyclicality moving out of retail investment, I would like to point out with some data that in investor behaviour and investor psychology, the cyclical element still persists. Right now, the flows have been flagging off and the net flow is nowhere compared to where it was a year or two back.”

5 behavioural biases to avoid while building your portfolio

Sumit Poddar of Tikona Capital lists 5 behavioural biases that investors should avoid to amass solid returns. Take a look!

5 ways to conquer behavioural biases & become master of your investments

There's more to investing than meets the eye! Behind the scenes, our own minds are engaged in a captivating dance of biases that can have a profound impact on our investment decisions. Sumit Poddar, Smallcase Manager, Founder & CIO, Tikona Capital, shares five ways to conquer behavioural biases.

The psychology behind financial decisions: How our minds play tricks on our investments

In this blog, we'll unravel the hidden psychology behind investing, exposing the quirks and biases that can turn even the most logical investors into emotional rollercoasters. So fasten your seatbelts and get ready for a thrilling ride through the world of behavioural biases!

Is your brain losing you money? 8 questions to understand if you have investment biases, how to avoid them

Find out how to avoid the biases that are affecting your investing decisions and resulting in financial losses for you.

Betting for long run? 9 behavioural bias that investors should watch out for

Investor behaviour is influenced by several biases that can cloud judgement, resulting in suboptimal investment decisions. Some of these biases include self-attribution, herd mentality, trend-chasing, loss aversion, disposition effect, representativeness, confirmation bias, familiarity bias, and recency bias. Investors should identify and understand these biases to avoid their ill effects.

The Behavioral Science of Investing: Exploring how emotions and cognitive biases impact investment decisions

Investor behaviour is the process by which people choose where to put their money. Understanding the factors that contribute to the success or failure of various investment strategies requires a study of investor behaviour.

Why the behaviour gap matters in equity investing

Behaviour gap turned positive in 2022 as investors continued with SIPs even when markets were turbulent.

5 types of behavioural biases of investors

Herd mentality leads to following what the group is investing in, which may work against an investors’ interests in the markets.

Mind Over Money: Nothing wrong with chasing the crorepati dream! Key is to avoid behaviour bias, explains Abhijit Chokshi

However, it also depends upon the stocks you select, a majority of companies need constant active tracking as in monitoring their quarterly earnings, sectoral tailwinds, and actions of the management at periodic intervals, and doing it on a part-time basis is dangerous.

John Rogers tips to avoid behavioural biases & amass stellar returns

Leading portfolio manager John Rogers defines value as buying stocks that are selling at a discount to their private-market value. "For us, an undervalued security is selling at more than a 40% discount to what we think the value of the company is," he said in an interview for a financial website.

Don't let your behavioural biases spoil your investment journey